SHARES of Domino’s India operator Jubilant Foodworks slumped to their lowest since March 2024 on Tuesday, after weak sales growth stoked fears of slowing momentum and margin strain.
Shares fell as much as 8.7 percent to 421 rupees. Benchmark Nifty 50 index was down 0.2 percent.
The company posted 0.2-percent same-store sales growth on Monday for its Domino’s India stores in the fourth quarter, down from the 5-percent growth it had recorded last quarter.
Analysts at Morgan Stanley called it a “big miss,” while Goldman Sachs said it will result in weak margins for the company.
Antique Stock Broking said that the cooking gas shortage in the country brought on by the Iran war may have impacted select outlets of the company during the January-March quarter, hurting its same-store sales growth.
This comes at a time when fast-food chains in India are struggling amid intense competition and rising costs. Peers Devyani International and Sapphire Foods both reported losses for the third quarter.
Jubilant’s fourth-quarter consolidated revenue from operations rose 19.1 percent year on year to 25.1 billion rupees ($270.04 million), compared to 21 billion rupees a year ago.
